(1.1)
Internal
It will be easier for the owners if funding has its options to select types of financing that fit their needs for the companies. 1.) Retained Earnings – Is a quick source of internal financing to be used which is a liquid assets. It is the proportion of the net income that have retained from a company and not paid out.

2.) Current Assets – Consistently, cash or any preferences that is easy to convert in cash. You can actually deprive from those stocks and use the procedure source of financing. Without decreasing you current assets through the levels, less than your current liabilities. This take away you from paying off your debts.

3.) Fixed Assets – The disadvantages of this is, you can’t just converted it into cash because it includes varied equipment, properties and factories from the assets. Because these assets takes a lot of time to convert in cash. Because they are not reliable to accessing short-term finance. If you have extra time to extend, you can sell off or rather, market the equipment and properties that invest to owners business. It is actually serviceable if you surpass any fixed assets.

4.) Personal Savings - It is the mini heart of your small business. If the business doesn’t have an assets to finance the project being built in, you may still have the personal finance that you can contribute to the business. This prevail an alternative to seeking external investors or loan allows you to control it on your own.

External
External resources are the finance or money which generated outside of the business. Segregation occurs when sources of funds is between long term sources and short term sources of finance. It roll up owing money from outside individual or organizations. (Short-Term Sources of Finance)

1. Bank Overdraft – It is